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nalin [4]
3 years ago
13

Calculate (a) the total installment price, (b) the carrying charges, and (c) the number of months needed to save the money at th

e monthly rate to buy the item below for its cash price (remember to round up). A bicycle with a cash price of $500, offered on the installment plan for $28 per month for 24 months. a. $ a0 b. $ a1 c. a2
Mathematics
2 answers:
astra-53 [7]3 years ago
7 0

<u>Cash Price of Bicycle</u>: $500

In Installment Plan, <u>you have to pay $28 per month for 24 months</u>.

A.

Total installment price is per month installment multiplied by number of months. So we have:

28*24=672 dollars


B.

A carrying charge is the cost associated with holding a financial instrument over a specific period of time. In this problem, it is the extra charge of availing the bicycle on installment plan. <u>This is the extra (in total) you have to pay </u><u>OVER</u><u> the cash price because of taking up installment plan.</u>

Carrying Charge = 672-500=172 dollars

C.

<em>Monthly rate of this problem is $28. If you were to save this amount per month to buy in cash price of $500, the amount of months it would take:</em>

\frac{500}{28}= 17.86 months

Rounding will give us 18 months.


ANSWER:

A. $672

B. $172

C. 18 months

Paraphin [41]3 years ago
6 0
8.50 + 11 (24) = 272.50 
The total price 
Carrying charges 72.50 

<span>divide $11 into 200</span>
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